Entrepreneurs aim at globalization and rebranding for high-end market
CGTN's Global Business

With the advent of 5G technologies and further development of the internet, Chinese brands are seizing the opportunities and rocketing to the international stage. Chinese entrepreneurs are embracing new trends as the middle class continues to drive consumption and industrial upgrade.

In China, the middle class population currently stands at around 225 million and is expected to hit 500 million in 2025, all set to fulfill China's consumption upgrade strategy. Jiang Nanchun, founder and CEO of Focus Media, noted that corporate branding has shown an obvious trend of focusing on the needs and mindset of middle class consumers for high-quality and high-end products.

"As we tracked 26 categories of brands since 2012, 18 of them chose to focus more on the high-end market," he added.

Huang Xiaochun, chairman of Spearhead IMC Group, said the new challenges for Chinese brands are: how to embrace the new era of 5G technologies and how to make local consumers in overseas market recognize you. "Hiring local talents and partner with them is a vital move when going abroad," he said.

Lenovo at World Intelligence Congress. /VCG Photo

Lenovo at World Intelligence Congress. /VCG Photo

Lenovo is a good example. The company was founded 35 years ago and now over 70 percent of its business comes from international operations.

"For the PC sector, Lenovo not only has the largest share globally, but also the first place in many countries' domestic markets. Corporate branding is the best way to communicate with consumers and shape our country's image in the international community," said Qiao Jian, chief marketing and strategy officer of Lenovo Group.

A report from UK-based consulting firm BrandFinance noted that Chinese brands generated over 95 percent of the brand value domestically, while attributing less than 10 percent of the brand value to overseas activity. However, those with larger proportion of brand value coming from abroad are on average more valuable than others.

Jiang Peizhen, chairman of Golden Throat Group, said they value the "go-global strategy" even as they are a Hong Kong-listed company. "I've served several factories for over 60 years and witnessed how consumers gradually recognize brands and embrace the upgrades of products," he said.

(CGTN's Wu Zheyu also contributed to the story.)